Queensland report, August 2015

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In this report

This report includes the following tables:

This report is issued by the Administrator of the National Health Funding Pool under section 240 of the National Health Reform Act 2011.

This report is prepared on a cash basis. It shows monthly and year-to-date (YTD) National Health Reform (NHR) funding and payments for Queensland for August 2015 as part of the National Health Reform Agreement.

Local hospital networks and National Health Reform

A local hospital network (LHN) is an organisation that provides public hospital services in accordance with the Agreement. An LHN can contain one or more hospitals, and is usually defined as a business group, geographical area or community. Every Australian public hospital is part of an LHN.

Note: The term ‘local hospital network’ is a national term. Some states and territories use their own terminology to describe these networks, such as local health districts, health organisations, and hospital and health services.

Under the Agreement, LHNs receive funding for the following public hospital services:

  • All admitted and non-admitted services
  • All emergency department services provided by a recognised emergency department
  • Other outpatient, mental health, sub-acute services and other services that could reasonably be considered a public hospital service.

Note: LHNs also receive funding from other sources, including the Commonwealth, states and territories, and third parties for the provision of other specific functions and services outside the scope of the Agreement, for example dental services, primary care, home and community care, residential aged care and pharmaceuticals. For further information on total funding to a particular LHN, contact the Queensland Department of Health to view the service agreement for that LHN.

Basis for National Health Reform payments – Queensland, August 2015

For the basis of the Commonwealth contribution to NHR funding, see Basis of Commonwealth NHR funding, 2015-16.

The basis used to determine NHR payments to LHNs in Queensland for August 2015 was advised by the Queensland Department of Health to be as follows:

Service agreements between the Department of Health and each Hospital and Health Service (HHS) are based on the Department’s funding and purchasing models. In broad terms, the funding model determines the price at which the department purchases services from HHSs, and the purchasing model determines the volume of services that are purchased.

In terms of the funding model:

35 of the largest public hospitals are funded through the Queensland Activity Based Funding (ABF) model, which sets prices at a disaggregated level for each type of public hospital service. The Queensland ABF model is based largely on the national ABF model, but includes a number of modifications to reflect Queensland priorities.

83 public hospitals, predominantly small regional and rural hospitals, and 4 specialist mental health facilities are funded through block funding arrangements which take account of hospital size and location. These are based on the National Efficient Cost Determination with some minor modifications.

Most non-hospital services (e.g. preventive health, primary and community health) are funded based on historical funding levels. However, some services, such as oral health and breast screening, are funded based on a price per unit of output.

The purchasing model determines the volume of services that the Department agrees to purchase from each HHS through the service agreement. The model is informed by Estimated Future Activity for each HHS and other key priorities for investment.

Reference information

The financial information outlined in the following report is categorised as:

  • NHR funding – when the Commonwealth or state or territory government pays NHR funding into a state pool account or state managed fund.
  • NHR payments – when NHR funding that has been deposited into a state pool account or state managed fund is paid out of the state pool account by the Administrator, or is paid out of the state managed fund by the state or territory.

State pool account transactions

Table 1a – State pool account transactions – Queensland, August 2015

This table shows funding paid into the Queensland state pool account by the Commonwealth, Queensland or other states/territories, and payments out of the state pool account to LHNs, the state managed fund, the Queensland Department of Health or the state pool accounts of other states/territories for August 2015.

NHR funding by source Paid into state pool account Paid out of state pool account
To Local hospital networks To State
Managed Fund
To state
health department
To state pool (other State) Total paid out
($) ($) ($) ($) ($) ($)
Commonwealth
ABF funding
251,043,812 251,043,812 251,043,812
Commonwealth
Block funding
32,198,861 32,198,861 32,198,861
Commonwealth
Other funding
5,985,382 5,985,382 5,985,382
Total C'wealth
funding
289,228,055 251,043,812 32,198,861 5,985,382 289,228,055
QLD
funding
559,172,907 371,812,198 0 0 371,812,198
Other state/territory funding 0 0 0 0
Total 848,400,962 622,856,010 32,198,861 5,985,382 0 661,040,253

See definitions and explanatory notes following table 1b.

Table 1b – State pool account transactions YTD – Queensland, August 2015

Following on from table 1a, this table shows year-to-date (YTD) funding paid into the Queensland state pool account by the Commonwealth, Queensland or other states/territories, and payments out of the state pool account to LHNs, the state managed fund, the Queensland Department of Health or the state pool accounts of other states/territories as at August 2015.

NHR funding by source Paid into state
pool account
Paid out of state pool account
To Local hospital
networks
YTD
To State
Managed Fund
YTD
To state health
department
YTD
To state pool (other State)
YTD
Total paid out
YTD
($) ($) ($) ($) ($) ($)
Commonwealth
ABF funding
484,340,830 484,340,830 484,340,830
Commonwealth
Block funding
64,397,721 64,397,721 64,397,721
Commonwealth
Other funding
11,970,765 11,970,765 11,970,765
Total C'wealth
funding
560,709,315 484,340,830 64,397,721 11,970,765 560,709,315
QLD
funding
939,096,211 751,695,946 0 0 751,695,946
Other state/territory funding 0 0 0 0
Total 1,499,805,526 1,236,036,776 64,397,721 11,970,765 0 1,312,405,261

Commonwealth ABF funding represents Acute admitted, Non-admitted, Emergency department, Sub-acute, and Admitted mental health service categories, which are funded by the Commonwealth through the state pool account and subsequently paid to LHNs.

Commonwealth Block funding represents Non-admitted mental health, Small rural hospitals, Teaching, training & research, and Other non-admitted categories, which are funded by the Commonwealth and paid to the state managed fund.

Commonwealth Other funding represents other amounts funded by the Commonwealth, transacted through the state pool account and subsequently paid to state or territory health departments. This currently represents the Commonwealth contribution to public health.

QLD funding represents funding contributions paid by Queensland into its own state pool account, and subsequently paid to LHNs within the state, to the Queensland health department and/or to other state pool accounts.

Other state/territory funding represents contributions paid to Queensland by other states and territories for cross-border activity.

Note: The grey shaded areas in these tables reflect cells that are not applicable for a particular 'paid out' column. For example, Commonwealth block funding is only paid to state managed funds and not to local hospital networks or state or territory health departments.

NHR funding and payments shown in these tables include GST where applicable.

For more information, see National Health Reform funding and payments.

State managed fund transactions

Table 2a – State managed fund transactions – Queensland, August 2015

This table shows funding paid into the Queensland state managed fund by the Commonwealth and Queensland, and payments out of the state managed fund to LHNs and other provider organisations for August 2015.

NHR funding by source Paid into state managed fund Paid out of state managed fund
To local hospital networks To Other Total paid out
($) ($) ($) ($)
Commonwealth Block funding 32,198,861 32,198,861
State/territory Block funding 109,139,145 74,177,566
Total 141,338,005 106,376,427 0 106,376,427

See explanatory notes following table 2b.

Table 2b – State managed fund transactions YTD – Queensland, August 2015

Following on from table 2a, this table shows year-to-date (YTD) funding paid into the Queensland state managed fund by the Commonwealth and Queensland, and YTD payments out of the state managed fund to LHNs and other provider organisations as at August 2015.

NHR funding by source Paid into state
managed fund
YTD
Paid out of state managed fund YTD
To local hospital
networks
YTD
To Other
YTD
Total paid out
YTD
($) ($) ($) ($)
Commonwealth Block funding 64,397,721 64,397,721
State/territory Block funding 181,316,711 146,355,133
Total 245,714,432 210,752,854 0 210,752,854

Block funding represents Non-admitted mental health, Small rural hospitals, Teaching, training & research, and Other non-admitted categories.

Commonwealth Block funding represents Commonwealth block funding contributions paid into the state managed fund from the state pool account, and block payments out of the state managed fund to LHNs and other provider organisations.

State/territory Block funding represents Queensland block funding contributions into the state managed fund, and block payments out of the state managed fund to LHNs and other provider organisations.

Note: The grey shaded areas in these tables reflect that these block payments cannot at this stage be identified by source of funding (state, territory or Commonwealth contribution).

NHR funding and payments shown in these tables include GST where applicable.

For more, see National Health Reform funding and payments.

NHR funding and payments by service category

Table 3 – NHR funding and payments by service category – Queensland, August 2015

This table shows NHR funding and payments by service category on both a monthly and year-to-date (YTD) basis for Queensland for August 2015. NHR funding and payments are separated into the following service categories – activity-based funding (ABF), block funding, and other funding.

Service category NHR
funding
NHR
payments
NHR
funding YTD
NHR
payments YTD
($) ($) ($) ($)
ABF
Acute admitted 511,688,735 393,357,229 898,842,494 780,510,988
Admitted mental health 42,303,419 32,578,214 74,310,566 64,585,361
Sub-acute 42,577,390 32,770,518 74,755,175 64,948,303
Emergency department 114,342,217 87,876,106 201,042,962 174,576,851
Non-admitted 99,272,975 76,273,943 174,414,305 151,415,273
Total ABF (Pool) 810,184,736 622,856,010 1,423,365,502 1,236,036,776
Block
Small rural hospitals 73,055,159 56,022,157 127,769,996 110,735,029
Teaching, training & research 29,874,643 20,897,197 50,771,840 41,794,394
Non-admitted mental health 38,408,203 29,457,073 67,172,596 58,223,431
Other non-admitted services 0 0 0 0
Total Block (SMF) 141,338,005 106,376,427 245,714,432 210,752,854
Other
Public health funding 5,985,382 5,985,382 11,970,765 11,970,765
Overdeposit 0 0 0 0
Cross-border 0 0 0 0
Interest 31,983 0 71,539 0
Total Other (Pool) 6,017,365 5,985,382 12,042,303 11,970,765
Grand Total 957,540,107 735,217,819 1,681,122,238 1,458,760,394

Total ABF (Pool) is an aggregate of both Commonwealth and state or territory NHR funding and payments for activity-based funding (ABF) which is transacted through the state pool account.

Total Block (SMF) is an aggregate of both Commonwealth and state or territory NHR funding and payments for block funding which is transacted through the state managed fund (SMF).

Total Other (Pool) represents other funding and payments transacted through the state pool account, including public health funding, overdeposits, cross-border funding and payments, and interest.

State and territory cross-border payments can either be:

  • Paid to the relevant state or territory's LHNs - included within ABF and/or block payments in the above table, or
  • Reimbursed to the relevant state or territory where the state or territory's LHNs are already being funded for the cost of treating cross-border patients - shown in the Cross-border row under Other in the above table.

NHR funding and payments shown in these tables include GST where applicable.

For more information, see National Health Reform funding and payments.

NHR contributions by local hospital network

Table 4a – NHR contributions by local hospital network – Queensland, August 2015

This table shows NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland during August 2015.

NHR contributions to LHNs are separated into an activity-based funding (ABF) component and a block component.

Local hospital network (LHN) ABF component
(ex GST)
Block component
(ex GST)
Total NHR payment
(ex GST)
($) ($) ($)
Cairns and Hinterland Hospital and Health Service 39,305,906 7,046,082 46,351,988
Central Queensland Hospital and Health Service 20,573,850 6,862,012 27,435,861
Central West Hospital and Health Service 0 2,340,291 2,340,291
Children's Health Queensland Hospital and Health Service 21,542,911 1,212,494 22,755,405
Darling Downs Hospital and Health Service 24,240,431 14,195,651 38,436,083
Gold Coast Hospital and Health Service 68,288,385 4,660,677 72,949,063
Mackay Hospital and Health Service 17,114,113 3,680,189 20,794,303
Mater Misericordiae Health Service Brisbane 32,671,686 1,267,864 33,939,551
Metro North Hospital and Health Service 133,367,075 10,707,232 144,074,306
Metro South Hospital and Health Service 119,687,928 13,825,729 133,513,657
North West Hospital and Health Service 5,359,108 2,235,446 7,594,553
South West Hospital and Health Service 0 5,215,901 5,215,901
Sunshine Coast Hospital and Health Service 44,196,292 3,652,947 47,849,239
Torres and Cape Hospital and Health Service 0 4,376,396 4,376,396
Townsville Hospital and Health Service 43,094,443 9,351,687 52,446,130
West Moreton Hospital and Health Service 22,070,444 9,359,363 31,429,806
Wide Bay Hospital and Health Service 28,076,269 6,259,681 34,335,949
Total 619,588,842 106,249,641 725,838,483

See explanatory notes below table 4b.

Table 4b – NHR contributions by local hospital network YTD – Queensland, August 2015

This table shows YTD NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland as at August 2015.

NHR contributions to LHNs are separated into an activity-based funding (ABF) component and a block component.

Local hospital network ABF component YTD
(ex GST)
Block component YTD
(ex GST)
Total NHR payment YTD
(ex GST)
($) ($) ($)
Cairns and Hinterland Hospital and Health Service 77,705,596 14,092,164 91,797,760
Central Queensland Hospital and Health Service 41,168,512 13,724,024 54,892,535
Central West Hospital and Health Service 0 4,680,582 4,680,582
Children's Health Queensland Hospital and Health Service 45,443,086 2,424,987 47,868,073
Darling Downs Hospital and Health Service 48,002,572 28,391,303 76,393,875
Gold Coast Hospital and Health Service 134,455,462 9,321,354 143,776,816
Mackay Hospital and Health Service 34,311,312 7,360,379 41,671,691
Mater Misericordiae Health Service Brisbane 64,150,805 2,535,728 66,686,533
Metro North Hospital and Health Service 264,157,882 21,414,464 285,572,346
Metro South Hospital and Health Service 237,249,335 27,651,458 264,900,793
North West Hospital and Health Service 10,844,899 4,470,891 15,315,790
South West Hospital and Health Service 0 10,431,801 10,431,801
Sunshine Coast Hospital and Health Service 87,356,673 7,305,893 94,662,566
Torres and Cape Hospital and Health Service 0 8,752,792 8,752,792
Townsville Hospital and Health Service 84,912,922 18,703,375 103,616,297
West Moreton Hospital and Health Service 43,694,284 18,718,725 62,413,009
Wide Bay Hospital and Health Service 56,168,356 10,519,361 66,687,717
Total 1,229,621,696 210,499,281 1,440,120,977

NHR contributions in this table are GST exclusive to enable comparability of NHR payments in each LHN report.

Note: This table excludes GST.
The majority of government funding to LHNs is not subject to GST. However in some cases hospital funding to non-government entities does attract GST, for example, denominational hospitals, privately and commercially owned health facilities, or any other non-government third party provider of health services or related supplies.

For more information, see National Health Reform funding and payments.

Estimated monthly, YTD and annual activity

States and territories provide service volume estimates at the start of each financial year, and if required, can continue to refine these estimates during the course of the year. These estimates form the basis of monthly reporting of service volumes until actual service numbers become available. These estimates are expressed as National Weighted Activity Units (NWAU).

States and territories provide estimated annual NWAU to the Administrator as a basis for determining the Commonwealth activity-based funding. Current month NWAU estimates accumulate through the year-to-date (YTD) NWAU, to be equal to the annual NWAU at the end of the financial year.

States and territories may also provide activity information relating to the delivery of other public hospital functions funded.

Table 5 – Estimated monthly, YTD and annual NWAU by local hospital network – Queensland, August 2015

This table shows estimated state or territory hospital activity for activity-based funding services expressed as NWAU for August 2015, the associated cumulative year-to-date (YTD), and total estimated annual NWAU for each LHN in Queensland.

Local hospital network (LHN) Estimated NWAU delivered in current month Estimated NWAU delivered YTD Estimated annual NWAU 2015-16
Cairns and Hinterland Hospital and Health Service 7,475 14,949 90,906
Central Queensland Hospital and Health Service 4,306 8,612 51,651
Children's Health Queensland Hospital and Health Service 4,801 9,601 56,546
Darling Downs Hospital and Health Service 5,194 10,388 61,497
Gold Coast Hospital and Health Service 13,536 27,072 160,975
Mackay Hospital and Health Service 3,167 6,334 37,974
Mater Misericordiae Health Service Brisbane 5,326 10,651 64,328
Metro North Hospital and Health Service 24,816 49,632 291,935
Metro South Hospital and Health Service 22,019 44,037 263,286
North West Hospital and Health Service 948 1,895 11,373
Sunshine Coast Hospital and Health Service 8,567 17,135 102,354
Townsville Hospital and Health Service 7,966 15,931 93,506
West Moreton Hospital and Health Service 4,598 9,197 54,785
Wide Bay Hospital and Health Service 5,309 10,619 63,384
Total 118,027 236,054 1,404,501

An NWAU is a measure of health service activity expressed as a common unit. It provides a way of comparing and valuing each public hospital service, whether they are admissions, emergency department presentations or outpatient episodes, by weighting them for their clinical complexity. The average hospital service is worth one NWAU - the most intensive and expensive activities are worth multiple NWAU, the simplest and least expensive are worth fractions of an NWAU.

Monthly NHR payments relate to the cash needs of public hospitals and do not necessarily reflect the volume of services to be delivered in the month.

For more information on the NWAU calculation, see Calculation of NWAU.